Original Message:
Re: Cut my price on timeshare...what else to sell it? (by Ken R.):
kekouri wrote:Dr Ken RichWelcome back! Those CPAs are still waitng on the www.tugbbs.com site to answer how you respond to the tax plan you explained in the thread you posted on the tug site. . . . Is the blog you providing the same info....that is the charity that wants $500 to start the process to 'get rid' of the T/S?
Our CPAs note that the IRS would not look favorible on the methods you present.
When the T/S owner gets called to the IRS to explain....does your charity come to help them?
kekouri,
Thank you for the update and question. I have called the IRS agent (actually a supervisor in the NPO section) several times for a follow up but have not received any word from her as yet. It has been since October 1st that I submitted my questions. If you wish to contact her yourself, contact me privately and I'll be happy to have you lend you support in getting an answer from her.
In the meantime, those people that were questioning the process were not CPAs. I've had a couple of accountants and CPAs mentioned and the implication is that they wouldn't like what I say, but I have yet to actually hear from one that has read what I say and the IRS regulations and publications I quote and reference. I'd be more than happy to hear from them. If you know them personally please send them to me.
The blog I provide actually gives more detail and quotes more IRS direct information, but it's way too long for here. That's why I suggested people read it and study the IRS regs on their own, not here in this forum. I wouldn't mind giving the full text here if this site would be willing to publish it in full. They can go to the blog to see how long it is and if it would fit in their space.
Let me make one thing clear. The charity doesn't take $500 up front to start the process. Unlike other charities that essentially 1. only take the better timeshares; 2. won't touch the less than prime ones; 3. have the seller continue to own it in their name; 4. have the owner pay all the fees involved until the charity finds an actual buyer; and 5. then keeps the actual sales proceeds as their profit, we take it now and don't resell it for 36+ months because of IRS regulations for what we do. That $500 is not paid to us. It is paid to the closing company of the owner's choice (not ours) and ONLY paid to the charity when the timeshare actually transfers out of the owner's name and into the charities name. That's taking payment after the fact, not up front and it's the owner that starts the process. A very big difference.
This isn't meant for everyone, only those that have not been able to do anything else successfully. If someone can sell it on the same basis as a charity, why don't they do that and donate the cash or keep it at their choice. It's when they can't that we become an option for them.
As for your final question, would we be willing to appear if the IRS came calling. Yes, if we were asked. What we do is expressly according to IRS regulations, publications and guidelines. We do not suggest or advise anyone to do anything the IRS would not accept. I would suggest you go to the blog and read the particular article titled "Timeshare Donations and IRS Regulations". It should be very clear for you and anyone else with an interest.
Please understand one thing of me personally. I do not take kindly to or accept unsubstantiated and biased attacks of opinions. I will spend whatever time is necessary to help an open mind learn but no more once it's apparent that it's closed and only wants to be argumentative. I will gladly read and answer documented and referenced challenges to what I write. I answer your questions here in this light.
If I can be of further service or if you would be willing to help me get the IRS to quicken their responses to my queries or send me the CPAs you mention to evaluate what I write, I'd very much appreciate it.
Dr. Ken Rich